Which of the Following Statements Is True About Bonds

question 97

Multiple Choice

Which of the following statements is true about bonds?

• A) Sellers of newly issued bonds are borrowers.
• B) When the government and large corporations want to borrow money they buy bonds.
• C) A bond owner must hold a bond until it matures.
• D) The interest rate on a bond is directly related to its price.

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Definitions:

Cash Prize

A monetary award given to a winner or recipient in contests, competitions, or lotteries.

Compounded Annually

the process of adding interest to the principal sum of a loan or deposit once every year.

RRSP

A Retirement Savings Plan officially recognized for both working individuals and self-employed people in Canada, designed for saving and investing towards retirement.

Annual Contributions

Regular amounts added to an investment, savings account, or retirement fund once every year.